On Sep 13, 6:44*pm, Ignoramus20659 ignoramus20...@NOSPAM.
20659.invalid wrote:
On 2010-09-13, wrote:

On Mon, 13 Sep 2010 16:10:56 -0500, Ignoramus20659
wrote:

The seller answered my question for his "insurance costs". He told me
that it is insured with some other properties, but his best guess is
7-10k.

What matters is what you'll have to pay. I'd call some insurance
agents, and allow for the rate to go up at least 10% per year.

I'm pessimistic about your chances of keeping the building occupied by
paying tenants. As opposed non-paying ones, which are easier than ever
to find . *:-)

Wayne, do you think that it is possibly a question of how much I am
asking?

If taxes plus insurance are $40k, and they pay me, say, $70k, which is
$1.57 per square foot per year, I will get a very acceptable 15%
return on investment. In a couple of years I could renegotiate if the
economy picks up.

I would like to know what you think, as you do have a mindset to
put reality above preconceived notions.

i

Think of it this way, Iggy.
You need a tenant who cannot buy a building on his own, but still has
enough money to pay you more money than it would cost to buy his own
building.